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Pokemon GO's active users are in steep decline - but does it really matter?

Axiom Capital Management seems to think so

Pokemon GO's active users are in steep decline - but does it really matter?

Pokemon GO is experiencing a large decline in users as high as 15 million, according to new claims.

This time it's Bloomberg, reporting on statements made by Axiom Capital Management Senior Analyst Victor Anthony, using data from Apptopia.

"Given the rapid rise in usage of the Pokémon Go app since the launch in July, investors have been concerned that this new user experience has been detracting from time spent on other mobile focused apps," wrote Anthony.

But he says that investors shouldn't be worried, because the game is already seeing a decline in daily active users and engagement.

Apptopia's data suggests Pokemon GO's DAUs have fallen from a high of 45 million to around 30 million

There are some issues with this, however.

For starters, Apptopia might not be the most reliable source. According to commenter and Playfo CEO Vitaliy Onishenko on an article about Slither.io's revenues, "its data is not even close to being real."

If we look at data from a slightly more reputable source, such as App Annie, the data suggests that Pokemon GO is still doing pretty well for itself, having generated around $350 million in revenue since launch. So while numbers may be decline, it's certainly still generating money as a top grossing game around the world.

A drop in the ocean

The Bloomberg report also suggests that this decline might cast doubt on Pokemon GO's viability as a product and overall popularity.

This seems unlikely – Apptopia's data suggests that the game peaked at around 45 million players, on 21 July, and has since declined to around 30 million players.

This kind of decline is normal in mobile games, since maintaining such a high number of players is entirely unfeasible.

And even by the most conservative estimates regarding percentages of players who will spend money on a game, having 30 million DAUs means Pokemon GO is likely to remain profitable.

The game has also yet to launch in a number of markets, including China, South Korea, and India, so there is plenty of opportunity for its DAUs to return to its previous peak in the future.

Editor

Ric is the Editor of PocketGamer.biz, having started out as a Staff Writer on the site back in 2015. He received an honourable mention in both the MCV and Develop 30 Under 30 lists in 2016 and refuses to let anyone forget about it.